Economy

FAAN Defends Airport Cashless Policy Before Reps Committee

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The Managing Director of the Federal Airports Authority of Nigeria, Olubunmi Oluwaseun Kuku, on Tuesday defended the agency transition to electronic payment systems across airports, stating that the reform is designed to curb revenue leakages and strengthen accountability.

Kuku appeared before the House of Representatives Committee on Finance chaired by James Abiodun Faleke as part of an ongoing revenue monitoring exercise covering 2023 to 2025 and focusing on internally generated revenue by ministries departments and agencies.

Addressing lawmakers concerns over congestion at airport toll gates following the rollout, Kuku said the initiative aligns with the Federal Government fiscal reform agenda. She stressed that every kobo due to the government must be properly accounted for, adding that the electronic system ensures transparent processing and full remittance of funds.

According to her, enforcement of the cashless policy formally began on Sunday after months of preparation including public sensitization stakeholder engagement and media campaigns that started in mid 2025. While acknowledging initial delays at some airports, she described them as temporary challenges associated with transition.

Kuku clarified that multiple payment channels are available. These include annual electronic tags for frequent users VIP stickers for approved individuals personal bank ATM cards including contactless and NFC enabled cards as well as FAAN issued cashless cards obtainable at airports and partner banks. She encouraged motorists to adopt contactless payment options to reduce transaction time.

The FAAN boss emphasized that improved revenue collection would directly support airport infrastructure maintenance and modernization projects nationwide. She maintained that the long term objective is enhanced service delivery and a transparent system that benefits all users.

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